Las Vegas foreclosures spike 32% as tourism slump, Trump tariffs hammer Sin City’s economy – NaturalNews.com

• Las Vegas faces an economic crisis with foreclosures in Clark County surging 32% in June, signaling distress in a tourism-dependent city.
• High interest rates, global uncertainty, and a 20% drop in Canadian tourism due to political tensions are crippling Vegas’ economy.
• Service workers report tips halved as visitor numbers decline, with hotel occupancy and midweek stays dropping sharply.
• Canadian tourists, once a major market, are boycotting Vegas over U.S. tariff disputes and annexation threats, offsetting gains from other regions.
• Nevada leads the U.S. in foreclosures, raising fears of a 2009-style crash, but experts note stronger home equity now than in past crises.

Las Vegas, the glittering desert oasis known for its casinos, entertainment, and endless buffets, is facing an economic reckoning. Foreclosures in Clark County skyrocketed by 32% in June, with 200 default notices filed in a troubling sign for a city built on tourism and disposable income.

A new report from the University of Nevada’s Lied Center for Real Estate blames high interest rates, global economic uncertainty, and a sharp decline in visitors, particularly from Canada, where Trump’s hostile rhetoric has sparked a 20% drop in tourism. With service workers reporting tips slashed in half and airline passenger numbers plummeting, the question isn’t just whether Vegas can recover; it’s whether the city’s golden era is fading for good.

A housing market in distress

The numbers don’t lie: 1,290 default notices were filed in Clark County in the first half of 2025, marking a 28% increase from the previous year. Single-family homes accounted for most of the filings (1,035), followed by townhomes (133) and condos (83). Nicholas Irwin, research director at the Lied Center, warned of “turbulent times ahead” for Las Vegas, where unemployment outpaces the national average.

“With high interest rates, global economic uncertainty over tariffs, and a reduction of tourism in Southern Nevada, the local housing market has started to show some signs of distress,” the report stated. The ripple effects are already being felt. Workers in casinos, restaurants, and hotels say tips have dropped by as much as 50%, a direct result of fewer visitors and tighter wallets.

The Canadian boycott and tourism freefall

Las Vegas thrives on tourism, but its lifeline is fraying. The city welcomed just 3.39 million visitors in March, marking an 8% drop from February, while April saw another 5.1% decline. Hotel occupancy rates dipped to 82.9% and midweek stays fell 2.5%, despite major conventions drawing half a million attendees. The biggest blow? Canadians, who once flocked to Vegas in droves, are staying away in protest.

“Some of the decisions that our administration has made around international relations has caused a drop in tourism,” said Steve Hill, president of the Las Vegas Convention and Visitors Authority (LVCVA). “That has happened for Canada. Our international visitation is actually pretty flat, but that is making up for the 20-plus percent drop in tourism from Canada, which is our largest international source of visitation.”

Trump’s threats to annex Canada as America’s “51st state” over tariff disputes didn’t help. “There’s an awful lot of the anecdotal conversation around Canadians being angry and upset about tariffs and talk around annexing the country,” Hill added. The result? A staggering 18.5% plunge in Canadian travelers, canceling out gains from Asia and Europe.

Airlines, airports, and economic dominoes

The fallout extends beyond the Strip. Harry Reid International Airport, Vegas’ main travel hub, expects a daily loss of 95,000 inbound seats (a 2.3% decline) due to Canada’s boycott and maintenance issues with Spirit Airlines, its second-largest carrier. “They have an issue with their (jet) engines,” said Joel Van Over of Ailevon Pacific Aviation Consulting. “They have to pull that engine off the plane, fix the cracks, put it back on the plane, and that whole process takes about 300 days.”

Meanwhile, the World Travel & Tourism Council predicts the U.S. will lose $12.5 billion in international visitor spending in 2025. “While other nations are rolling out the welcome mat, the U.S. government is putting up the ‘closed’ sign,” said CEO Julia Simpson.

Is this 2009 all over again?

Nevada now leads the nation in foreclosures, with one in every 2,326 homes receiving a default notice in a disturbing echo of the 2009 housing crash. But experts urge caution. “Today, we have more homeownership equity than we’ve ever had in this country. Forty percent of the homes in this country are paid off,” said mortgage lender David DeHart. Still, inflation has eroded purchasing power, with costs up 24% since 2020.

Las Vegas isn’t doomed… yet. But without a course correction, the city risks becoming a cautionary tale of economic mismanagement and geopolitical blunders. The Federal Reserve’s next move on interest rates could decide whether the housing market stabilizes or spirals. For now, service workers, homeowners, and business owners are left wondering: Will the tourists come back? And if not, what’s left of Vegas when the lights dim?

Sources for this article include:

DailyMail.co.uk

DailyMail.co.uk

8NewsNow.com

NevadaCurrent.com